Setting concrete financial (spending and saving) goals and gauging success against them is financial discipline. After developing that financial discipline, a person might take more measures toward financial independence.
Why is Financial Discipline Important?
Financial discipline is something every individual should follow, but unlike the overall discipline in our lifestyle, this is also missing in many of us! The opportunities that come with financial independence are further enhanced for a person who also is financially disciplined.
Some key advantages of following a monetary routine include the following-
- Building a habit of saving.
- Smaller regular investments can create wealth in the long run.
- Keeps an individual better prepared for emergencies.
- It helps in budgeting one’s income, considering its opportunity cost.
This cleared the air about financial awareness and its importance. The majority of these terms lead toward capital and securities markets. These and the traditional asset classes have given participants good returns to strengthen their belief in them. But today’s investment buckets would be incomplete without the emerging group of digital assets. Through this blog, we will understand how these digital assets fit the financial discipline models, their systematic approach towards them, and their associated benefits of them.
What are digital assets?
Digital assets encompass many intangible assets stored in digital forms, such as digital currencies, cryptocurrencies, tokens, digital media files (e.g., images, videos, music), NFTs, software, domain names, digital certificates, and more. Many digital assets rely on blockchain technology, a decentralized and distributed ledger system that ensures transparency, security, and immutability. Blockchain enables secure transactions and provenance verification and eliminates the need for intermediaries in asset transfers.
One prominent category of digital assets is cryptocurrencies, such as Bitcoin, Ethereum, or Litecoin. These digital or virtual currencies use cryptographic techniques to secure transactions and control the creation of new units. We will be looking at these more to understand the role of this asset class in monetary discipline.
Digital Assets and Thematic Investment Approach
In India, the number of users who have accepted these digital and crypto assets is increasing. So much so that reports predict the total number of Indian crypto asset users will reach 156 million by the end of 2023. This Indian crypto adoption rate will be more than that of the U.S., U.K., Russia, and Japan. Even the Supreme Court of India, in the verdict given on 4th March 2020, has uplifted the ban on cryptos and put them in a new category- Virtual Digital Assets (VDA), which are completely legal for citizens to invest in.
After all this, the question of these assets catering to a disciplined financial approach remains.
We already know the behavior of traditional asset classes. VDAs market is still at a nascent stage compared to them. It has just reached its teenage years. A systematic and structured approach will help the users get the hang of this evolving market. It will also encourage the habit of investing we have emphasized since this article began. LotusX has created such a golden chance that no one should miss!
Thematic Investment Model by LotusX is an approach developed to
- Create awareness regarding this growing asset class.
- Give the option to explore the market within one’s risk capacity.
- The perfect option to diversify your portfolio.
- Inculcate the habit of investment.
What is included in the Thematic Investment Model?
This approach has three different models, prepared according to the risk-averseness of the customers. The table below describes the categories offered*
| Details | Conservative Model | Growth Model | Multi-Asset Model |
| Coins/ tokens included | Bluechip coins/ tokens | Bluechip coins+Altcoins | Bluechip coins+ Altcoins+ Sectoral Coins |
| Description | Any 4 coins from these Bluechip Coins- Bitcoin, Ethereum, Binance Coin, Polkadot, Cardano, and Solana | Any 2 each from both these categories Bluechip Coins- Bitcoin, Ethereum, Binance Coin, and Polkadot Altcoins- UniSwap, ApeCoin, Axie Infinity, and 1Inch | Any 1 from the Bluechip and Altcoins category each and any 3 from the sector-specific coins Bluechip Coins – Tron, Polygon, and XRP Altcoins – Decentraland, Sandbox & Enjin coin Sector-Specific Coins – Chainlink, Axie Infinity, Fantom and 1Inch |
| Level of Risk | Low | Moderate | High |
| Minimum Amount | Rs. 10,000 | Rs. 8,000 | Rs. 5,000 |
T&C Applied*
Benefits of Thematic Investment Models
We have already mentioned that this kind of an approach will help any individual to be more responsible with their finances though some of the other benefits of this are-
- Exploring Digital assets based on risk appetite: Digital assets are highly volatile. Hence can be overwhelming for an individual who is new to them. Also, putting in lump-sum amounts in such a volatile market is risky. The easy solution is testing the waters by sticking to one’s risk capacity. The three models provided are simple to understand, giving a bucket of coins/tokens and all within the risk one would like to take on.
- Full support provided: LotusX is a centralized Indian crypto trading platform. By becoming our customer, one can get all the support required throughout this process from our efficient team of support executives.
- The benefit of Rupee-Cost Averaging: By spreading out the amount over a long period, taking advantage of several market cycles, and lowering the investment cost, the rupee-cost averaging technique helps lessen the risks associated with investing in volatile asset classes. With this strategy, customers get a small sum of money at multiple pricing points rather than a large sum at a higher pricing point, independent of the state of the market.
- Disciplined investment: By putting a small amount for regular monthly intervals, one develops the habit and thus the investment discipline
- Monthly Report: An exclusive monthly analysis for each category to help customers make the best decision will be provided by our team. Though we recommend you do your research as well.
- Market Awareness: Our Thematic Investment model allows room for a thorough understanding of the crypto industry and market awareness.
We hope this clarifies that many options are available for any individual willing to adopt the disciplinary approach for investment. Digital assets in one of those. With the systematic approach, even in a volatile market, you can learn, explore your risk capacity and create wealth gradually.
